Controlling — Business Studies STD 12 Commerce — Question

Controlling means ensuring that activities in an organisation are performed as per the plans. Controlling also ensures that an organisation’s resources are being used effectively and efficiently for the achievement of predetermined goals. Controlling is, thus, a goal-oriented function.
Importance of controlling:

1. Accomplishing organisational goals: It helps in accomplishing organisational goals by bringing to light, deviations if any and indicating corrective action.
2. Making efficient use of resources: It helps in making efficient use of resources by ensuring that each activity is performed in accordance with pre-determined standards.
3. Ensuring order and discipline: It ensures order and discipline among employees by keeping a close check on their activities.
4. Improving employee motivation: It improves employee motivation as the employees’ know well in advance the standards of performance on the basis of which they will be appraised.
5. Judging accuracy of standards: It helps in judging accuracy of standards in the light of changes taking place in the organisation and in the environment.
6. Facilitating coordination in action: It facilitates coordination in action as each employee and department in governed by predetermined standards which are well coordinated with one another.